[miningmx.com] – NGOAKO Ramatlhodi, South Africa’s mines minister, said empowerment targets should be increased for mining companies while discounts should be given to local buyers of strategic minerals, such as coal.
In an interview with BDLive, Ramatlhodi also suggested that an audit in empowerment compliance in the mining sector may not be finished by November, the date set aside by his predecessor, Susan Shabangu.
These changes are part of his proposed review of amendments to the Mineral & Petroleum Resources Development Act (MPRDA).
The Financial Times reported earlier this month that Ramatlhodi had asked President Jacob Zuma not to sign the amendments into law because there had not been enough public consultation in the South African parliament’s upper house, the National Council of Provinces.
A primary objection of the amendment is that the state has a free-carry of 20% in oil and gas projects and can buy control of the projects in time. This amendment would put a dampner on South Africa’s emergent fuels industry, critics have said.
Said Ramatlhodi of the 26% target set down in the MPRDA : “I think it should be increased.”
“I don’t have a magic figure. First we must get the target met and met in substance, not just ownership but the overall transformation of the industry, like full participation of empowerment partners and individuals. They should not only receive royalties but be part of management.”
Another MPRDA amendment is that minerals deemed strategic, such as coal, should be sold at gate price to local users, effectively removing the cost of transportation. But Ramatlhodi told BDLive that even greater discounts should be applied.
“There is a view that says we might want to get bit more of a discount than leave it at the gate price, where it is at the moment,” Ramatlhodi told BDLive.
“I’m not sure where we are going to settle. We are consulting on all these things.” He said he had met Chamber of Mines president Mike Teke.
“The question of pricing is not a decision. It’s a thought. At the end, you want people to express their views and then we negotiate,” he said.
